Loading...
HomeMy WebLinkAboutrda min 1986/07/17 MINUTES OF AN ADJOURNED REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA Thursday, July 17, 1986 Council Conference Room 4:05 p.m. City Hall MEMBERS PRESENT: Chairman Cox, Members Moore, Malcolm, McCandl i ss, Campbell MEMBERS ABSENT: None STAFF PRESENT: Assistant Executive Di rector Asmus, Agency Attorney Harron, Coltlllunity Development Oi rector Desrochers, Assistant Community Development Di rector Gustafson, Redevelopment Coordi na tor Kassman, Seni or Community Development Director Buchan, Community Development Specialist Davies, Principal Management Assistant Byers ITEM NO. 4 - REPORT: REQUEST FROM FOCUS AREA DEVELOPER TO DISCONTINUE ELEVATOR SERVICE IN THE PARKING STRUCTURE Mr. Dick Zogob, Focus Area Developer, informed the Agency that the elevator in the parking structure is currently out of service due to vandalism. Mr. Zogob requests concu rrence of the Agency to discontinue elevator service indefinitely due to recurring vandalism and high repair costs to keep it in operation. Di rector Desrochers presented the staff recommendati on that the Agency deny the request and require that the elevator be repaired and placed back into operation on a limited daily basis, between the hours of 9 a.m. and 6 p.m. Member Malcolm questioned the hours that the elevator is used. Member McCandliss also questioned the hours and stated she was most concerned with the problem of vandalism, wanting this issue addressed rather than discontinuing use of the elevator. Director Desrochers stated it was the aim of everyone to have the elevator open all the time if the vandalism could be curbed. He noted the responsibility of the security for the parking structure lies with the owner of the mall shops. They have discussed the possibility of a contract for reserve police from the City, but this has not developed as of yet. Mr. Fago, Manager of the Park Plaza at the Village, commented he believes the real problem is the vandalism which is going on every day. He stated there has been a probl em wi th the fi re equi pment in the parki ng structure bei ng damaged as well. The elevator has been closed for approximately 45 days. Member Malcolm asked if the Agency has received any complaints. Director Desrochers responded that two complaints have been received; one from the Diet Center and one from United Parcel Post. Redevelopment Agency -2- July 17, 1986 Member McCandliss was concerned about the damaged fire equipment. Mr. Fago responded that a unique situation has been worked out in which the glass areas will be replaced with metal so there will be no immediate visual attraction of a hose or fire extinguisher. MEMBER MALCOLM MOVED to deny Mr. Zogob's request and accept staff's recommendation of limited daily use of the elevator from 9 a.m. to 6 p.m. and report back in 6 months. Member ~loore asked the timel ine to be changed to 3 months. MEMBER McCANDLISS SECONDED the motion and added the requirement that Mr. Zogob report back to the Agency in 30 days with plans for replacing fire equipment and to review the plans for security. The motion passed unanimously. Member Moore stated his concern with regard to the vandalism occurring in the parki ng structure. Member McCandl i ss stated she agrees that the Ci ty / Agency has a responsibility to share in the problem, however, she would like to hear a recommendation from the developer. ITEM NO. 2 - RESOLUTION 704 ENTERING INTO AN AGREEMENT FOR A PROJ ECT REPRESENTATIVE FOR THE BAYFRONT NATURE INTERPRETIVE CENTER CONSTRUCTION AND ~IENDING AN AGREEMENT FOR BIOLOGICAL SERVICES The construction of the Bayfront Nature Interpretive Center will be under way soon and wi 11 requi re the servi ces of a "Cl erk-of-the-Works" . Seal ed bi ds were received and the lowest bidder selected. In addition, due to the environmental sensitivity of and surrounding the building site, it is being recommended that a biologist be hired to be present on site for the first 60 days of construction. MEMBER MALCOLM OFFERED THE RESOLUTION, the reading of the text was waived by unanimous consent. Member Campbell questioned the duties of the Cl, erk-of-the-Works and to whom does he report. Community Development Director Desrochers responded the Cl erk-of-the-Works wi 11 report di rectly to the Bui 1 di ng and Housi ng Department. If there are changes he will report to the City Manager's office and then to the Agency. Director Desrochers stated the Community Development Department is recommendi ng Testi ng Engineers-San Di ego as the Cl erk-of-the-Works. Seni or Coltlllunity Development Spec i a 1 i st Buchan announced the two sealed bi ds that were received: Construction Law Center - $36,999.90, and Testing Engineers-San Diego - $35,000.00. The lowest qualified bidder was selected. MSUC (McCandliss/Campbell) to amend the resolution to include Testing Engineer-San Diego. (Chairman Cox not present for the vote.) MEMBER MALCOLM OFFERED THE RESOLUTION AS AMENDED, the reading of the text was waived by unanimous consent, passed and approved unanimously. (Chairman Cox not present for the vote.) ---_..._------_.._.__..,-~---~-- ...-",,-,...-- - .----..--. Redevelopment Agency -3- July 17, 1986 ITEM NO. 3 - RESOLUTION 705 DETERMINING THE PUBLIC NECESSITY FOR THE ACQUISITION OF THE PROPERTY LOCATED AT 496 THIRD AVENUE TO CONSOLIDATE PROPERTIES FOR MAJOR REDEVELOPMENT AND TO REDUCE THE LIABILITY OF EXISTING ACCESS AND AUTHORIZING THE COMMENCEMENT OF CONDEMNATION PROCEED INGS TO ACQUIRE SAID PROPERTY The Agency directed staff to acquire the property located at 496 Third Avenue (known as the Cotija Taco Shop) in order to correct certain hazardous traffic conditions that affect public health and safety in this area. Staff has received an appraisal for the subject property and has negotiated with the owners and their representative in order to reach a mutually acceptable purchase price. The owners have rejected the offer and counter offer proposed by the Agency. The Agency is asked to adopt the requisite resolution authorizing eminent domain proceedings to take place. Member Malcolm stated he did not like the title of the resolution. One of the reasons the Agency is acquiring this property is because of safety hazards to the City. The resolution title mentions consolidation of properties only and he feels the resolution shoul d include the 1 i abi 1 i ty problem. Di rector Desrochers stated on the Agenda Statement prepared along with the resolution, under Discussion, the traffic situation is the main item of concern. MEMBER MALCOLM OFFERED THE RESOLUTION, the reading of the text was waived by unanimous consent. MSUC (Moore/Campbell) to amend the heading of the resolution to include: "in order to reduce the liability of existing access". (Chairman Cox not present for vote.) Vi ce-Chai rman McCandl i ss i nvi ted anyone forward who woul d 1 ike to speak on this matter. Attorney John Epsom, representi ng the owners of the property, di scussed the reasons the Grossmans are opposed to the resol ution. They feel the tra ffi c probl em referred to has not been a probl em. The property owners woul d be wi 11 i ng to rehabi 1 itate the exteri or of the property. They woul d 1 i ke to pursue further the idea of allowing the owners to continue to manage the property unti 1 such time that the two adjacent lots coul d be purchased by the City. Oirector Desrochers noted the Agency has been working on this situation for at 1 east the 1 ast 5 years. The Agency has been concerned wi th not only the safety but the appearance of this corner. Vice-Chairman McCandliss coltlllented that it is never easy to authorize the City to move in the di recti on of emi nent domain. The Agency has been negoti ati ng with the owners and it appears the owners are at least interested in moving from the property given the appropriate amount of compensation. She feel s the _n _____..__ -_..-.__._-_.._-~--_... Redevelopment Agency -4- July 17, 1986 Agency shoul d move forward and all ow the court to determi ne what the fai r value is. Member Moore pointed out the curb-cut on this property is very dangerous and that it never should have been authorized. Member McCandliss stated when Heavenly Donuts left, and before the new users came in, the Agency tried to act on this matter at that time. However, because it was a pre-existing, non-conformi ng use nothing coul d be done about it. Agency Attorney Harron explained because the property owner would lose access to his busi ness the Ci ty woul d need to reimburse the owner for the loss. At that time, in looking at the value of the loss, it was found to be close to fee value. It made sense to purchase the whole parcel rather than take just the curb cut access away. The resolution passed unanimously (4-0; Chairman Cox not present for vote). ITEM NO. 5 - REPORT: APPROVAL OF SALE OF MARIE CALLENDER RESTAURANT AT 330 "F" STREET On August 6, 1981, the Agency approved the issuance of $1.2 mill ion in Conunercial Mortgage Revenue Bonds for Marie Callender Ventures, Inc. for the construction of a restaurant at 330 "F" Street. The Loan Agreement between the Agency, Crocker National Bank and Marie Callender Ventures, Inc. for this project requires a prior consent from the Agency and Crocker National Bank for any change in title to the project or site. On May 30, 1 986, Rama da Inns, Inc. purchased Marie Callender Pie Shops, Inc. As part of this transaction, the ownershi p of the property at 330 "F" Street was transferred to Mr. Donal d W. Callender. The sale of the restaurant and transfer of the property is in default of the Loan Agreement unl ess the Agency and Crocker Nati onal Bank approve the transaction. Member McCandl i ss i nqui red as to what impact the break-up of the corporati on and the sale of Marie Callender's is anticipated on the operation of the restaurant. Director Desrochers responded no impact is anticipated. MSUC (Malcolm/McCandliss) to accept report. (Chai rman Cox not present for vote. ) ITEM NO. 6 - REPORT: CONSTRUCTION OF AN ACCESS STREET IN THE VICINITY OF BRANYDYWINE AND OTAY VALLEY ROAD; OTAY VALLEY ROAD PROJECT AREA An Owner Participation Agreement was recently approved for the Werdi n Development Company for the development of approximately ten acres of industrial 1 and bounded by Brandywine and Otay Valley Road within the Otay Valley Project Area. The project calls for the construction of 160,000 square feet of industrial buildings and requires the construction of a public street from Brandywi ne to a parcel immedi ately to the west which woul d otherwi se be 1 andl ocked. The developer has requested assi stance from the City in the construction of the access street. Di rector Desrochers stated the Cushman Family who owns the property immediately west has agreed to reimburse the City for the cost of construction of the street. ___ _. _____ ______ _.~__~_.____ ___________~_m.·."_._·.,_·__.._·_ Redevelopment Agency -5- July 17, 1986 Member Malcolm stated that it is the developer's responsibility to install the road. He feels in this situation the development is going to take place with or wi thout assi stance from the Redevelopment Agency. He woul d rather use money to encourage cleanin9 up an area or improving existing streets. Chairman Cox ques ti oned the need for the road. Redevelopment Coordi nator Kas sman stated it is required by the Fire Department and also by the Engi neeri ng Department as part of the subdivision plan approval for thi s project. Mr. Kassman further stated the Project Area Commi ttee members were polled on this matter. Three Committee members do not object to it; they would like to see a fair and equitable percentage rate attached to the amount of money put up by the Agency. One member did object. Mr. Werdin was present and responded to a question from Member Malcolm. Mr. Werdin felt that a commitment from the City had been made with regard to assistance in constructing the road. The developer understood that the street had to be addressed and what the conditions of the tentative map were but there was never anything finite stated about how the street would be financed. Mr. Cushman was also present representing hi s mother, Helen Cushman. He stated the Cushman Family's support of the recommendation of staff. MSUC (Malcolm/McCandliss) to accept report. ITEM NO. 8 - REPORT: ISSUES CONCERNING THE ONE PARK PROJECT The developer for the One Park residential project in the Focus Area is not in compliance with the schedule of performance in the Supplemental Disposition and Development Agreement with the Agency. That document requi res that bui 1 ding permits for the construction of the One Park units be pull ed by June 9, 1986. To date, the permits have not been pulled. On March 6, 1986, the Agency approved the reducti on of the low and moderate income uni ts in One Park Limi ted from 100% of the project to 75% of the proj ect. At the same time, they requested a report on the feasibil ity of further reducing the low and moderate income unit requirement for the project. Member Malcolm commented that he spoke with the school di stri cts because he was concerned about setting up separate sets of standards: 1) fl at fee, and 2) generation. He feels occupancy should not occur until settlement has taken place with the school districts. He wants to be sure money is on deposit to cover the school fees. Member McCandliss referred to the letter received from County Counsel where it is portrayed that the City viewed this project as being handled differently. She does not view this project as being any different than any other project. Mr. John Lynn of the Chula Vista City School District was present and stated that no agreement has been entered into on a differential of developer fees. Alicia Cruz of the Sweetwater Union High School District was also present and concurred with Mr. Lynn. . .--..._._,,----- ---~-----_._-_._-----~.- Redevelopment Agency -6- July 17, 1986 Michael Cowett, attorney for the developer, was present and spoke regarding Condition 15 of the resolution approtfng this project. Mr. Cowett pointed out the condi ti on was wri tten by him, Attorney Harron and County Counsel. At the time it was written they were not talking about the typical school fee, but a specific condition because of the location and unit size of One Park in the center of the City. The likelihood of the number of children is going to be small. Mr. Cowett stated it would be appropriate to arrange an escrow procedure to pay the fees equal to the district wide charge so they would be covered and can get the permit, otherwise they will have to wait until August when the school district boards meet again. Attorney Harron proposed the enti re amount requested from the school s be requested from the developers and be dispersed as follows: 1) 48%, which the developer agrees the school is entitled to, would go to the schools; 2) 52%, which is at issue, would go to the Agency in an escrow account; if there is no resolution of their problem within a certain period of time, the Agency would have the ri ght to gi ve it to the school s; and 3) an indemnity agreement whereby the developer agrees to indemnify the City/Agency for any damages as a result of this agreement. Member McCandliss stated our obligation would be met if the full amount of funds were somehow put forward and held. Member Moore questioned what the agreement is between the City of Chula Vista and the school di strict. Attorney Harron responded there is an agreement between the City and the developer, but not an agr~ement between the City and the School District. There is an informal arrangement whereby a developer can bring the City an in-lieu letter to satisfy any concerns about availability. Ms. Alicia Cruz, Director of Planning of the Sweetwater Union High School District stated there are standardized fees and that individual development projects are not considered. Member Campbell stated he would support having the fees paid in full to escrow (the full amount required by the schools) and having a Dec. 1 deadline. Attorney Harron suggested a December 1 deadline or occupancy, whichever comes first. MSUC (Cox/Campbell) that the Agency Attorney be directed to prepare an escrow agreement for school fees. (Member Malcolm not present for the vote.) Chai rman Cox stated he woul d 1 i ke to have the agreement by Tuesday, July 22, 1986. Member McCandl iss stated she woul d 1 ike to have comments from the School Districts at the same time. MSUC (Cox/Campbell) to accept the 2nd recommendation of the Report providing for 75% of the units of the project to fall under the assistance provisions of Agency Funding. (Malcolm not present for vote.) H' _ _ ... _ __ ___._._.___._~__________,__,..__ Redevelopment Agency -7- July 17, 1986 ITEM NO.7: REPORT: INSTALLATION OF "NO PARKING ANYTIME - TOW AWAY" SIGNS IN THE OTAY VALLEY REDEVELOPMENT PROJECT AREA The Redevelopment Agency recently considered the installation of parking restrictions on all streets within the Otay Valley Road Redevelopment Project Area. Due to protests from business operators on Otay Valley Road and within the Recycling Park, the Agency referred this matter back to staff and the Otay Valley Road Project Area Coltlllittee for reconsideration. MS (Cox/Moore) to accept staff's recommendation. Chairman Cox asked if anyone was present who would like to speak with regard to thi s matter. Dr. Guy Lichty of the Project Area Committee was present and asked about the area in front of the Cruz Building, wanting to know if the parking signs will be present until Otay Valley Road is improved or for a period of one year. Director Desrochers responded whichever occurs first. Dr. Lichty commented he feels the no overnight parking from 6 p.m. to 6 a.m. with tow-away is an important provision. The motion passed unanimously (Member Malcolm not present for the vote). ITEM NO. 9 - RESOLUTION 706 EXTENDING AN AGREEMENT FOR PROFESSIONAL SERVICES WITH ANTHONY CIOTTI The current agreement with Anthony Ciotti for services in connection with the City's Communi ty Housing Improvement program (CHIP) expi red on June 30. The successful efforts of Mr. Ci otti recommend renewal of the agreement. It is appropri ate to increase the amount of the agreement to provide a wage adjustment commensurate with the percentage of increase realized by City employees represented by the Chula Vista Employees' Association. RESOLUTION OFFERED BY MEMBER McCANDLISS, the reading of the text was waived by unanimous consent, passed and approved unanimously. (Member Malcolm not present for vote.) DIRECTOR'S REPORT Director Desrochers asked for a subcommittee meeting with Chairman Cox and Member Malcolm with regard to CVIC negotiations. Director Desrochers also stated that he and his wife would be going to Yuma on July 18 to view a motel along with Member McCandliss. CHAIRMAN'S REPORT Chai rman Cox di scussed the need to have a Closed Sess i on wi th regard to the purchase of the lawn mower shop. -- -- - --------------,. -- --- --.----- Redevelopment Agency -8- July 17, 1986 CHAIR~iAN COX MOVED for adjournment to Closed Session to discuss potential litigation and Section 404 Permit. The motion passed (Member Malcolm not present for vote). ADJOURNED to Closed Session at 5:47 to discuss potential litigation and Section 404 Permit. Adjourned from Closed Se to conclusion of City Council meeting on 7/22/86 at 7:00 p.m. WPC 2423H ..._---_._..__..~,,_..."._- -------- ..-~-